Visa Acceptance Guide for Lodging and Cruise Line Merchants · This guide is intended to assist you with understanding the unique rules, business practices and operating procedures

Visa Acceptance Guide for Lodging and Cruise Line Merchants

Visa Acceptance Guide for Lodging and Cruise Line Merchants i© 2016 Visa. All Rights Reserved.

Contents

About This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Important Note About Country Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Guide Navigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

What is an Authorization? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

When Do I Request an Authorization? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How Do I Handle Authorizations Below the Floor Limit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How Long Does Authorization Remain Valid? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Estimated Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How Do I Process an Incremental Authorization? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Final Authorization and 15% Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How to Handle an Authorization Reversal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Delayed/Amended Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Amended Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Delayed Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Lodging Merchants Guaranteed Reservations and No Shows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Reservation and Prepayment Confirmation and Cancellation Best Practices . . . . . . . . . . . . . . . . . . . . . . . 11

Confirmation Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Cancellation Policy Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Proper Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Receipt Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

No-Show Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Full Prepayment Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Partial Prepayment Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

ii Visa Acceptance Guide for Lodging and Cruise Line Merchants © 2016 Visa. All Rights Reserved.

Global Customer Care Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Dynamic Currency Conversion (DCC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Dynamic Currency Conversion (DCC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Express Check-out Transaction Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

“User Agreement” Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Appendix 1: Visa Europe Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Visa Acceptance Guide for Lodging and Cruise Line Merchants 1© 2016 Visa. All Rights Reserved.

About This Guide

As part of our commitment to support travel merchants, Visa created the Visa Acceptance Guide for the Lodging and Cruise Line Merchants. This guide is designed to provide you with relevant information to properly accept Visa products. This document should be used in conjunction with other Visa Best Practices materials.

This guide is for lodging and cruise line managers, front desk staff, reservations staff, sales and marketing professionals, and finance and operations executives outside of the jurisdiction of Visa Europe, which may have different practices and requirements.

All of the information in this guide has been organized for quick and easy access. Here, you’ll find:

• AnswerstoquestionsyoumighthaveaboutacceptingandprocessingaVisatransaction.

• Usefultipsforhandlingauthorizations,reservations,no-shows,overbookings,andmorefromtheunique perspective of travel merchants.

This guide is intended to assist you with understanding the unique rules, business practices and operating procedures that exist in the lodging and cruise line industries.

If, after going through this guide you have any additional questions, please contact your acquirer .

Important Note About Country Differences It is important to note that the Visa payment system is operated in the European economic area by Visa Europe, a separate company operating under license from Visa Inc.

Participation in the Visa payment system in such countries is governed by the Visa Europe Operating Regulations, rather than the Visa Core Rules and Visa Product and Service Rules. While the Visa Europe Operating Regulations share many core requirements to ensure interoperability, such rules and best practices may vary from the guidelines set forth in this document. Please see Appendix 1: Visa Europe Territory for a list of countries within Visa Europe.

Guide NavigationVisa Acceptance Guide for the Lodging and Cruise Line Merchants provides icons that highlight additional resources or information:

Additional insights related to the topic that is being covered.

A brief explanation of the Visa service or program pertinent to the topic at hand.

2 Visa Acceptance Guide for Lodging and Cruise Line Merchants © 2016 Visa. All Rights Reserved.

DisclaimerThe information in this guide is current as of the date of publishing. However, card acceptance and processing procedures are subject to change. This guide contains information based on the current Visa Core Rules and Visa Product and Service Rules . If there are any differences between the Visa Core Rules and Visa Product and Service Rules and this guide, the Visa Core Rules and Visa Product and Service Rules will prevail in every instance . Your merchant agreement and the Visa Core Rules and Visa Product and Service Rules take precedence over this guide or any updates to its information. To access a copy of the Visa Core Rules and Visa Product and Service Rules, visit www.visa.com and click on Operations and Procedures.

All rules discussed in this guide may not apply to all countries. Local laws and rules may exist and it is your responsibility to ensure your business complies with all applicable laws and regulations. The information, recommendations or “best practices” contained in this guide are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice . This guide does not provide legal advice, analysis or opinion . Your institution should consult its own legal counsel to ensure that any action taken based on the information in this guide is in full compliance with all applicable laws, regulations and other legal requirements .

Visa is not responsible for your use of the information contained in this guide (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party’s intellectual property rights, any warranty that the information will meet your requirements, or any warranty that the information is updated and will be error free.

For further information about the rules or practices covered in this guide, please contact your acquirer .

To access additional card acceptance resources for merchants, visit visa.com. Current merchant publications are available as downloadable PDF files.

http://visa.com


Authorization

The authorization process allows the card issuer to approve or decline a transaction. In most cases, authorizations are processed electronically in a matter of moments.

If properly done, authorizing a transaction is quick and easy, and helps protect merchants against fraud and chargebacks.

What is an Authorization? An authorization is the process in which the card issuer approves or declines a transaction. An authorization can be obtained in two ways:

• Onlineauthorizationusingapoint-of-sale(POS)terminal

• Voiceauthorization(Pleasecallyouracquirertoobtainanauthorizationtelephonenumber.)

When Do I Request an Authorization?You should always obtain an online or voice authorization if you have a total transaction amount above your floor limit.

Note: In most countries, the floor limit is zero, and you must obtain an authorization for all transactions.

Do not use a $1 authorization status check to verify if the cardholder’s account is in good standing. Use the $0 Account Number Verification Service instead.

How Do I Handle Authorizations Below the Floor Limit?There is no requirement to obtain authorization for a transaction below the floor limit. However, authorizations may be requested based on your preference.

How Long Does Authorization Remain Valid?An authorization remains valid for the estimated length of the guest’s stay or cruise. When a stay is extended or the guest is charging more incidental transactions than originally aticipated, you should obtain an incremental authorization approval for the additional transaction amount that you expect will be generated.

Estimated AuthorizationWhen the guest arrives for check in or embarkation, you may estimate the guest’s total charges and obtain an authorization for the estimated amount.


This estimate should be based on the amount the guest is expected to spend during the stay or voyage, plus applicable taxes.

How Do I Process an Incremental Authorization?If a guest spends more than the estimated amount of the initial authorization, you may request an incremental authorization. The amount of the incremental authorization should only cover any anticipated extra charges beyond the original authorization.

1. Disclose to your guest at time of check-in or embarkation that you will process an estimated authorization based on expected final transaction amount and may process subsequent authorizations as needed throughout the stay.

2. Follow standard Visa authorization procedures provided by your acquirer to obtain an incremental authorization approval for the additional transaction amount. Ensure all data elements required for processing an incremental authorization are included in the request.

Note: Exceptions may vary by region.

3. If you receive a decline response on an incremental authorization, contact the customer and ask for another form of payment.

If a lodging or cruise stay extends beyond two weeks, you should settle the transaction and obtain authorization for a new transaction.

Final Authorization and 15% RuleWhen the guest checks out, authorization is required in the following instances:

• Iftherewasnopreviouslyestimatedauthorizationandtheactualtransactionamountisabovethefloor limit, authorize the actual transaction amount.

• Iftherewasapreviouslyestimatedauthorizationamount,applythe“15%rule”todeterminewhetheror not an incremental authorization is required. To do this:

– Add 15% to the previously estimated initial authorization amount and any additional incremental authorizations.

– Compare the total (sum of the previously estimated authorization amount plus 15%) to the actual (or final) transaction amount.

If the actual transaction amount is more than the sum of the previously estimated authorization amount plus 15%, an incremental authorization is required for the difference between the previously estimated authorization amount and the actual transaction amount .

Example #1

The actual transaction is $500 .00 . As shown below, this is more than the previously estimated authorized amount plus 15%.

Previously estimated authorized amount $350.0015% Added 53.00Total $403.00


For this situation, an incremental authorization is necessary.

$500.00 – $350.00 = $150.00

Actual transaction amount

Previously estimated authorized amount

You obtain incremental authorization

for this amount*

Example #2

The actual transaction is $400 .00 . As shown below, this is less than the previously estimated authorized amount plus 15%.

Previously estimated authorized amount $350.0015% Added 53.00Total $403.00

In this instance, no incremental authorization is required.

How to Handle an Authorization ReversalIf the actual transaction amount is more than 15% less than the total of the previously estimated authorization, you must process an authorization reversal, which is the difference between the previously estimated authorization amount and the value of the actual transaction amount.

Example

The actual transaction is $400 .00 and the previously estimated authorization amount is $500.00 . As shown below, this is more than 15% less than the previously estimated amount.

Previously estimated authorized amount $500.00Actual transaction amount (final bill) $400.00Difference $100.00

You must obtain an authorization reversal

for $100.00.

You must also process an authorization reversal for the amount of previously estimated authorization, whenever a transaction is subsequently voided or cancelled.

* The total sum of the incremental authorization amount plus the previously authorized amount should equal the actual (or final) transaction amount.


Even if you request and obtain an authorization, you are not guaranteed protection against claims for fraud. To help you avoid losses:• Obtainproofthatthecardwaselectronicallyreadandpresentbyobtaininganelectronicreadofthecard

or an imprint of the information embossed on the card (this can be done either at check in or check out). In the U.S., in case of magnetic-stripe failure, follow standard Visa authorization procedures provided by your acquirer.

• AskthecardholdertosignthereceiptifabovetheVEPSornosignaturerequiredlimit,and/or• Takeappropriateaction(s)toavoidotherdispute-relatedissuesthatmayapplytoyourindustryandcould

result in a chargeback of the card transaction.

A fraud chargeback is invalid if a legible imprint is obtained or the card was electronically read.


Delayed/Amended Charges

On some occasions, guests may have purchased additional items that were not reported until after they have departed and are not included on a preliminary folio or receipt. Merchants may either amend the receipt prior to the transaction being sent to their acquirer, which is an amended charge, or process an additional payment transaction, which is a delayed charge.

Amended ChargesAn amended charge may be included in the original lodging or cruise line transaction and must be related to the merchandise or services provided by the merchant to the cardholder. A lodging merchant, for example, would consider mini bar charges or movie rental fees.

To support the charge:

• Thecardholdermusthaveparticipatedinthetransactionbuttheydonothavetoexpresslyapprovethe charge before the merchant processes the transaction.

• Themerchantmustprovidethecardholderanamendedreceiptandmustprocessthetransactionwithin 24 hours after check-out.

Delayed ChargesA delayed charge must be a separate transaction from the original lodging or cruise transaction and must be directly related to the merchandise or services provided by the merchant to the cardholder during the service period. The cardholder must have participated in the transaction.

To support the charge, the merchant must provide to the cardholder both of the following:

• Thetransactionreceiptforthedelayedcharge

• Anexplanationofthecharge

The cardholder does not need to expressly approve the charge before the merchant processes the transaction but retains the right to dispute the charge.

• Themerchantmustprocessthechargewithin90calendardaysofcheck-outordisembarkationdate


Lodging Merchants Guaranteed Reservations and No Shows

A guaranteed reservation ensures that a cardholder’s reservation will be honored when a Visa card is used to make it, and allows a merchant to charge a no-show fee for one day if the cardholder does not cancel the reservation within the terms of the disclosed reservation policy.

Guarantee Reservations

• Provideproperdisclosureofcancellationpolicyandothertermsandconditionsforreservation

Note: Lodging merchants may set the cancellation policy that meets their business needs. Visa only requires that merchants offer at least a 24-hour cancellation period after the receipt of the cancellation policy to the cardholder. Cancellation/return/refund policies must be properly disclosed to the cardholder.

• ObtainVisaaccountnumberfromcardholdertoguaranteereservation,butdonotcompleteanauthorization at the time of booking

• Sendconfirmationtocardholderthatincludesreservationdetailsandappropriatedisclosuresofreservation conditions at time of booking

Charging a No Show Fee

Lodging merchants may charge a no-show fee for one day if cardholder does not cancel within the disclosed cancellation terms. Merchants are protected from no-show disputes when policies are properly disclosed to the cardholder.

Lack of Inventory

If the guaranteed room is not available at the time specified in the reservation due to lack of inventory, the merchant must provide the promised service at a comparable establishment and transportation to that establishment. A merchant must hold inventory available for one day to accommodate guest arrival delays.


Prepayments

Lodging and cruise line merchants may charge a prepayment or a charge prior to guest arrival. The term prepayment replaces the term advance deposit.

A merchant that processes partial and full prepayments, must comply with all of the following requirements, as applicable:

Prepayment (Partial) Prepayment (Full)

Disclosure to Cardholder and Cardholder Consent

The merchant must provide, and the cardholder must consent to,* all of the following in writing at the time of the first or only partial prepayment:• Descriptionofpromisedmerchandiseor

services• Termsofservice• Timingofdeliverytocardholder• Transactionamount• Totalpurchaseprice• Termsoffinalpayment,includingthe

amount and currency• Cancellationandrefundpolicies• Dateandtimethatanycancellation

privileges expire without prepayment forfeiture

• Anyassociatedcharges

The merchant must provide, and the cardholder must consent to,* all of the following in writing at the time of the full prepayment:• Descriptionofpromisedmerchandiseor

services• Termsofservice• Timingofdeliverytocardholder• Transactionamount• Refundpolicies• Dateandtimethatanyrefundprivileges

expire without prepayment forfeiture• Anyassociatedcharges

Amount A prepayment amount must be less than the cost of the merchandise or services purchased and must be applied to the total obligation.

The prepayment amount must be equal to the cost of the merchandise or services purchased.

Transaction Processing Requirements

Zero Floor Limit for each transaction. The amount authorized must be no more than the amount of the individual transaction.If an authorization request for a subsequent payment is declined, the merchant must notify the cardholder in writing and allow the cardholder at least seven days to pay by other means.

T&E processing requirements may apply.

* Where required by applicable laws or regulations, the merchant must also provide to the cardholder a record of the cardholder’s consent.


Prepayment (Partial) Prepayment (Full)

Cancellation Procedure

If the cardholder cancels within the terms of the cancellation policy, the merchant must provide to the cardholder both of the following within three business days:• Cancellationorrefundconfirmationinwriting• Credittransactionreceiptfortheamountspecifiedinthecancellationpolicy

Retention of Payment If the cardholder does not pay the balance and does not cancel within the terms of the cancellation policy, the merchant may retain a partial prepayment only if the merchant has disclosed on the transaction receipt that the prepayment is nonrefundable.

If the cardholder does not cancel within the terms of the cancellation policy, the merchant may retain a full prepayment only if the merchant has disclosed on the transaction receipt that the prepayment is nonrefundable.Because the prepayment may be forfeited if a guest fails to cancel within the required timeframe, the merchant must not also charge the guest for a no-show transaction.

Merchant Responsibility to Refund an Amount and Provide a Comparable Substitute

The merchant must refund the full amount paid if the merchant has not adhered to the terms of the sale or service.If the cardholder claims a reservation, and the merchant has not held the reservation, the merchant must provide at no additional cost to the cardholder comparable merchandise or services and pay any associated costs for the remainder of the reserved time period, or as agreed between the merchant and the cardholder.

Cardholders must receive a copy of the merchant’s cancellation policy, including reservations made through a travel agent.


Reservation and Prepayment Confirmation and Cancellation Best Practices

At the time a reservation or cruise booking is made, reservation details and booking confirmation as well as applicable cancellation policies should be provided to your customer.

Confirmation InformationFor more information on how to properly disclose policies please see the next section, Cancellation Policy and Proper Disclosure.

• Ensureyourmailed,emailed,ortextedconfirmationcontainsthefollowinginformation:

– Cardholder name, billing address, phone number, and a suppressed Visa account number

– Exact name and physical location of your establishment or cruise embarkation details

– Lodging accommodation rate, or cruise details, reservation dates, and any other necessary reservation details

– Clearly stated cancellation policy and procedures

– Customer Service contact phone number(s)

• Prominentlydisplaythereservationconfirmationcodeintheemailtoassureyourgueststhattheirreservations were successful. Advise the guest to retain the confirmation code.

Cancellation Policy Requirements Provide disclosure of reservation and booking conditions to the cardholder at the time of the lodging reservation or cruise booking. If the booking was made by telephone, the merchant should send to the cardholder a written reservation confirmation via mail, email, or text containing all required disclosures within 24 hours of the reservation.

For guaranteed reservations the merchant must:

• Providetothecardholderaperiodofatleast24hoursafterthereservationismadetocancelthereservation without penalty

• Holdthereservationforatleast24hoursaftertheagreedstarttimeunlessthecardholdercancelsthereservation by the time specified in the merchant’s cancellation policy

• Provideatnocosttothecardholdercomparableservicesandpayforassociatedcosts,untiltheagreed checkout time if the cardholder claims the reservation within 24 hours of the agreed start time, and the merchant has failed to hold the reservation

• Processano-showtransactiononlyifthecardholderhasnotproperlycanceledthereservationaccording to the disclosed and agreed cancellation policy and has not claimed the reservation


For prepayments the merchant must:

• Properlydisclosecancellation/refundpolicies

• Retainprepaymentifcustomerdidnotcancelperagreeduponcancellationterms.However,ano-show transaction must not also be processed.

If the reservation or prepayment is properly cancelled, provide the cardholder with:

• Acancellationcode

• Acredittransactionreceiptwithinthreebusinessdaysofthecredittransactiondate,ifapplicable


Proper Disclosure

Visa proper disclosure rules for return, refund and cancellation policies for transactions in face-to-face, mail order/telephone order and eCommerce environments have been updated. These changes align Visa Rules with current industry practice and technology, providing additional options to properly disclose return/cancellation policies to the cardholder.

A merchant that properly discloses their cancellation policy to the cardholder at the time of a reservation can improve cardholder satisfaction and reduce potential disputes.

• Discloseyourcancellationpolicyduringthereservationprocess.

– This allows the guest to review your cancellation policy before making a reservation commitment. You can reduce guest inquiries and disputes by informing your guests in advance of the terms and conditions of your cancellation policy, and the amounts that could be charged if booked reservations are changed.

The Visa Rules for proper disclosure allow new options for clarifying refund/cancellation policies to the cardholder. For example:

• Writtennoticetobeprovidedthroughmail,email,ortextmessageforguaranteedreservationsmadeby phone

• Ifthecardholderbookedthereservationon-line,themerchanthasachoiceofwherethedisclosurecan be located within their website or application with either of the following:

– In the sequence of pages before final checkout, including a “click-to-accept” or other acknowledgement button, checkbox, or location for an Electronic Signature

– On the checkout screen near the “submit” button

To better serve face-to-face merchants, Visa Rules have been clarified to ensure that the cardholder either signs or initials near the disclosure.

It is important for merchants to understand that issuers retain dispute rights if the merchant fails to properly disclose or prove the cardholder received the cancellation policy, or the cardholder can prove they canceled according to the agreed upon policy.


Receipt Requirements

Visa standards require that all merchants provide key transaction information on any receipt. In addition to Visa Rules on receipt requirements, lodging and cruise line merchants must also provide the following:

• Datesofcheck-inandcheck-outforlodgingmerchantsorembarkation/disembarkationforcruisemerchants

• Dailyroomchargeforlodgingmerchantsorcabinrateforcruisemerchants

• Taxes

• Descriptionanddatesofindividualpurchases

• Authorizationdates,amounts,andapprovalcodes

No-Show Transactions

If the receipt is for a no-show transaction, the receipt should contain:

• Dailyroomcharge

• Taxes

• Agreedstartdateoftheaccommodation

• Thewords“NoShow”

Full Prepayment TransactionsIf the receipt is for a full prepayment, the following must be provided:

• Fullcancellationandrefundpolicy,includingthedateandtimethatanyrefundprivilegesexpirewithout prepayment forfeiture

• Prepaymentamount

• Scheduledstartdateordeliverydateofthemerchandiseorservices

• Theword“Prepayment”

Partial Prepayment Transactions If the receipt is for a partial prepayment, the following must be provided:

• Fullcancellationandrefundpolicy,includingthedateandtimethatanycancellationprivilegesexpirewithout prepayment forfeiture

• Prepaymentamount

• Theword(s)“Deposit”or“PartialPayment”

• Forcancellations,cancellationconfirmation

• Forbalancepayments,theword“Balance”


Damages

Visa allows merchants to charge for damages as long as the cardholder consented to pay for the damages using their Visa card after the damage has occurred. In addition, the merchant cannot contractually obligate the cardholder to pay with their Visa card prior to the damages occurring, nor request and retain a deposit in an attempt to collect damages.

The charge for damages must be directly related to the services provided by the merchant to the cardholder during the service period.

• Betheactualcostforreplacement/repairofdamagetothemerchant’spropertyorforaninsurancedeductible, whichever is less

To support the charge, the merchant must provide documentation within ten days of the check-out or disembarkation date, and before processing any additional transactions. The documentation must:

• Explainthechargeandconnectthechargetothecardholder’suseofthemerchandiseorservicesduring the service period

• Includeanyaccident,police,orinsurancereport

• Specifytheportionofthedamageorlossthatwillbepaidbyinsuranceandthereasonthatthecardholder is liable for the amount claimed

• Informthecardholderthatpaymentforlossordamagewiththecardholder’sVisacardisoptionalandnot a required or default payment option

The cardholder must expressly approve the charge before the merchant processes the transaction.

The merchant must process the charge within 90 calendar days of check-out or disembarkation date.


Global Customer Care Service

Visa cardholders can take advantage of assistance services by calling the Global Customer Care Service (GCCS) at 1-800-VISA-911 (847-2911). The GCCS provides 24-hour emergency service,* seven days a week, to Visa cardholders around the world. This service reports lost or stolen Visa cards, arranges for emergency card replacements and cash disbursements, and provides customer information services.

*Certain services do not apply to all Visa cards. The cardholder may contact their card issuer for full terms and conditions governing their use of the GCCS.


Dynamic Currency Conversion (DCC)

To ensure that international transactions are conducted in accordance with the Visa Rules, it is important that merchants understand the different types of transaction currency practices, such as Dynamic Currency Conversion (DCC).

Dynamic Currency Conversion (DCC)Some merchants convert the purchase price of goods or services from the currency in which the purchase price is displayed to cardholders own currency. This is called DCC. At check-out, the merchant may convert the price to another currency, with cardholder agreement and usually assesses conversion-related commissions and mark ups. Since 19 October 2013, the merchant must offer DCC in the cardholder’s billing currency.

The cardholder must be offered a choice to accept or decline DCC and must actively choose the DCC option prior to the merchant processing the transaction.

A merchant offering DCC must comply with the following requirements:

• DisclosureRequirements

DCC disclosures must occur at the time the DCC offer is made and before the cardholder is asked to actively choose the transaction currency. When offering DCC to a cardholder, a merchant must clearly and concurrently present all of the required disclosure information in writing or on an electronic display. The only exception is for the telephone order transaction environment, such as a prepayment, where the merchant must provide all disclosures verbally to the cardholder before initiating a DCC transaction. Specific disclosure information requirements include the following:

– Transaction amount of the goods or services (including taxes) shown in the merchant’s local currency

– Currency symbol or code of the merchant’s local currency

– Total transaction amount in the offered DCC transaction currency

• Forlodgingandcruiselinemerchantsofferingexpresscheck-out,thetotaltransactionamountis not required until the transaction is processed

– Currency symbol or code of the offered DCC transaction currency

– Exchange rate used to determine the DCC transaction amount

• Thisshouldincludeallfeesandcommissionsormarkupsoverawholesaleorgovernmentmandated rate – so that the exchange rate is a ratio between the transaction amount in the merchant’s local currency and the final transaction amount in the proposed DCC transaction currency.

• Forexpresscheck-outtransactions,themerchantisnotrequiredtodisclosetheexchangeratebut must disclose that the exchange rate will be determined by the merchant on the date that the transaction is processed without additional consultation with the cardholder.

– Any commission, fees or mark ups over the wholesale or government-mandated rate.


• ActiveCardholderChoiceRequirements

The merchant is required to offer the cardholder a choice to accept DCC, following proper disclosures. The cardholder must be able to actively choose DCC. Active choice is defined as the cardholder taking an action to indicate his or her choice to accept DCC. DCC must not be offered by default or as an “opt-out” option. Likewise, the merchant must not make the choice on behalf of the cardholder.

Merchants must not complete a DCC transaction before the cardholder has actively made his or her choice of transaction currency and merchants are required to honor the cardholder’s choice of currency. If the cardholder decides to decline the DCC offer, the merchant must allow the cardholder to complete the transaction in the merchant’s local currency, using the cardholder’s original payment method of choice.

For express check-out transactions where active choice is made at the time of check-in a completed check box indicating choice on a written agreement is the proof that cardholder has been offered a choice of currencies and has agreed to DCC.

• TransactionReceiptRequirements

A merchant offering DCC must provide the cardholder with a DCC transaction receipt that includes confirmation or proof of the cardholder’s choice to accept the DCC service. All transaction receipts, regardless of POS environment/channel, must include all the disclosure information as specified in the disclosure requirements and the following information:

– The words “Transaction Currency” next to the total transaction amount charged by the merchant in the DCC transaction currency as agreed to by the cardholder.

– A statement indicating that currency conversion is conducted by the merchant.

– A statement indicating that the cardholder has been offered a choice of currencies.

– Proof of the cardholder’s choice to pay in the transaction currency.

• Whenactivecardholderchoiceismadeonaprintedreceipt,thecardholderwillcheckasinglebox, or make a selection from side-by-side check boxes indicating their choice of currency directly on the receipt. A presence of a single check box or side by side check boxes serves as the proof of choice.

• Foracceptanceenvironmentswheretheactivechoiceismadebeforethetransactionreceiptis produced (e.g., electronic signature capture acceptance device, PIN pad, ecommerce) either of the following are acceptable methods of providing confirmation or proof of choice on the transaction receipt:

- A completed accept box that has been reproduced on the receipt electronically

- A statement printed on the receipt indicating that the cardholder has been offered a choice of currencies including the merchant’s local currency

– DCC related information on the receipt must be presented in English or in a language that the cardholder can understand. For more information contact your acquirer.


Express Check-out Transaction RequirementsBefore initiating DCC for a priority check-out transaction, a lodging or cruise line merchant must complete a written agreement with the cardholder that specifies all of the following:

• ThatthecardholderhasagreedthatDCCwilltakeplace

• Thatthecardholderhasbeenofferedachoiceofcurrenciesforpayment,includingthemerchant’slocal currency

• Thespecifictransactioncurrencyagreedbythecardholderandmerchant

• ThatthecardholderexpresslyagreestoDCCbymarkingan“accept”boxonthewrittenagreement

• Anycurrencyconversioncommission,fees,ormark-upontheexchangerateoverawholesalerateorgovernment-mandated rate

• Thattheexchangeratewillbedeterminedbythemerchantatalatertime,withoutadditionalconsultation with the cardholder

If the card-holder actively chooses DCC, the transaction receipt must include the same disclosures previously provided to the cardholder in addition to all other required information that is described in detail in the Transaction Receipt Requirements section of this guide.

“User Agreement” RequirementsDCC must not be offered by default or on an “opt-out” basis. However, when a cardholder enters into a user agreement with card on file, for example a lodging “priority club” or online membership, the merchant may provide an opt-in solution for a DCC service whereby the cardholder agrees that future transactions on the same card may be processed as DCC transactions.

Note: This “User Agreement” terms does not include express check out/returns, as previously detailed.

• Suchagreementsmayapplyonlywherethecardholderandthemerchanthaveanon-goingrelationship covered by a user agreement or contract.

• Theagreementmustbeanopt-inprocessandmust:

- Include a statement that the cardholder agrees that DCC will take place for current and future transactions.

- Indicate any currency conversion commission, fees or mark-up on the exchange rate that will be applied over a wholesale or government-mandated rate.

- Not use any language or procedures that may cause the cardholder to choose DCC by default; for example, when presenting the DCC choice, different size fonts may not be used to encourage DCC selection.

- Not tell the cardholder that transactions cannot be processed in the merchant’s local currency.

- Not misrepresent either explicitly or implicitly that its DCC service is a Visa service.

• Foronlineorelectronicmembershipforms,theopt-inprocessmayinvolveapre-selectedradiobutton or check box selecting DCC that the cardholder may de-select provided there is a reasonable opportunity to de-select.

• Ifthefees,commissions,ormark-upincreaseaftertheinitialagreement,thecardholdermustbenotified and provided with the DCC opt-in choice again.


• ThecardholdermustbegiventheopportunitytooptoutoftheDCCserviceonaanindividualtransaction basis.

• Evenwithauseragreementinplace,ifthecardholderelectstocompletethetransactioninaface-to-face environment, the merchant must provide full disclosure and choice.

Sample DCC Transaction Receipts

Samples of DCC transaction receipts are provided below. These examples are intended to highlight DCC transaction receipt requirements and are for illustrative purposes only.

Sample 1: Active Choice made on the PIN Pad

The Rafael Hotel420 Rafael Dr.415 555-5555

Merchant ID: 02885Terminal ID: 0003459238Associate: 00000054

Visa SaleCard Number: xxxxxxxxxxxx-1234Expiration Date: MM/YY

Invoice Number: 165223Authorization Number:

Transaction Date: 5/4/16Transaction Time: 14:35

Sale Amount: USD 185.00Tax 9.25%: USD 17.11Total Amount: USD 202.11

Exchange Rate: 1 USD = 1.32 CADCurrency Conversion Fee: 2.5%

Transaction Currency: CAD

Total Transaction Amount: CAD 274.47

Dynamic Currency Conversion (DCC)is o�ered by The Rafael Hotel.

I have been o�ered a choice of currencies and agreeto pay in Canadian Dollars (CAD)

Signature:

Exchange RateDCC Service Fee

Clearly visible statement: “DCC is offered by the merchant”

Active cardholder choice and proof of choice

Transaction currency symbolTransaction amountTransaction currency

Transaction amount (merchant’s local currency)Currency symbol (merchant’s local currency symbol)


Sample 2: Active Choice made on the Transaction Receipt

West City Hotel14 Tai Po Road

+852 1234 0000

Merchant ID: 98749Terminal ID: 02742984093Associate: 016345

Visa SaleCard Number: xxxxxxxxxxxx-1234Expiration Date: MM/YY

Invoice Number: 324675332Authorization Number:

Transaction Date: 23/04/16Transaction Time: 09:32

Sale Amount: HKD 1,950.00Tax: 0%Total Amount: HKD 1,950.00

Exchange Rate: 1 HKD = .129032 USDMark-Up: 3%Transaction Currency: USD

This currency conversion is provided by the West City Hotel.

I have been o�ered the choice to pay in Hong Kong Dollars or in US Dollars. I chose the transaction currency by

checking one of the boxes below:

ORHKD 1,950.00

Total TransactionAmount

HKD Transaction Currency

USD 259.16Total Transaction

AmountUSD Transaction Currency

Signature:

Contact your acquirer for more information.

Exchange RateMark-Up

Clearly visible statement: “DCC is offered by the merchant”

Active cardholder choice and proof of choice

Transaction currency symbolTransaction amountTransaction currency

Transaction amount (merchant’s local currency)Currency symbol (merchant’s local currency symbol)


Appendix 1: Visa Europe Territory

The following is a list of European economic area’s where participation in the Visa payment system is governed by the Visa Europe Operating Regulations, as of the date of this publication.

Andorra Latvia

Austria Liechtenstein

Belgium Lithuania

Bulgaria Luxembourg

Croatia Malta

Cyprus Monaco

Czech Republic Netherlands

Denmark Norway

Estonia Poland

Faeroe Islands Portugal

Finland Romania

France San Marino

France, Metropolitan Slovakia

Germany Slovenia

Gibraltar Spain

Greece Svalbard & Jan Mayen Is.

Greenland Sweden

Hungary Switzerland

Iceland Turkey

Ireland United Kingdom

Israel Vatican City State

Italy

© 2016 Visa. All Rights Reserved. VBS 01.MAR.16

Visa Acceptance Guide for Lodging and Cruise Line Merchants · This guide is intended to assist you with understanding the unique rules, business practices and operating procedures

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